Complaint: SAINT JOSEPH, MI-A complaint filed on June 4th, 2015, alleges that over $280,000.00 in accounted-for royalties owed to Nannette LaRee Hernandez, author of the book u201cCreative Screwing: a woman’s guide to becoming an erotic enchantress of superlustful sex,u201d were converted by Alan Leddon dba Spero Publishing and his co-publisher, LULU.com, through the years 2012, 2013 and 2014.(Nannette LaRee Hernandez v Alan Leddon dba Spero Publishing, Rebekah Leddon, LULU.com, LULU Enterprises, INC. LULU LTD. Case No. 15-0121CB) In October of 2013, Hernandez filed a police report against Alan Leddon for fraud. Leddon admitted to the police that he had converted all of Hernandez’ royalties and never paid her according to the publishing contract. Hernandez filed suit on September 4, 2014, only to be stonewalled repeatedly by Leddon’s refusal to turn-over documents and information, and by his denial to the court that he had any royalties in his possession that were owed to Hernandez. Hernandez’ attorney, Rebecca Sanford, subpoenaed LULU, the co-publisher of Hernandez’ book, only to have her subpoenas ignored until Hernandez went to the New York Times and then threatened to sue LULU if LULU did not provide the subpoenaed documents and information. Under pressure, Kathy Hensgen, SVP Operations at LULU, admitted to Attorney Sanford in an email dated May 4, 2015, that LULU had set-up a second account in the name of Leddon’s wife, Rebekah Leddon, and that all Hernandez’ pertinent sales data for 2012, 2013 and 2014, had gone into that account, and that Hernandez’ royalties were paid to Rebekah Leddon, from LULU via Paypal. On May 19, 2015, at a Summary Judgement Hearing against Alan Leddon, Attorney Sanford requested that the court dismiss the complaint against Leddon so that Hernandez could re-file a combined lawsuit against LULU.com, Rebekah Leddon and Alan Leddon dba Spero Publishing, siting conversion of her royalties and fraud under the Uniform Fraudulent Transfer Act, and alleging that LULU had funneled her royalties to Rebekah Leddon with the intent to co-conspire, contribute and assist Leddon in his fraudulent scheme against Social Security and the IRS, so that he could obtain free benefits, while he and LULU converted Hernandez’ royalties. Hernandez’ complaint asks for 3x the amount of the $280,000.00 in unpaid royalties and an additional 3x the amount owed to her in royalties, for Breach-of-Contract, Misrepresentation, Conspiracy, Unjust Enrichment and Fraud under the Uniform Fraudulent Transfer Act. Hernandez also seeks punitive damages.
Tags: Online Business
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